Taking a loss
This is a really important subject that I need to deal with because taking a loss paralyzes most traders and keep them for potential future profits.
Many traders equate losing a trade with being a loser, allowing that loss to paralyze them and cripple their judgment. This is the wrong attitude toward a loss.
A loss is only a lesson that you have paid for, learn from it. You pay for college and you pay for seminars, and you never beat yourself up for paying to increase your knowledge in those arenas. My Friend a loss is simply an opportunity that you have paid for to increase your knowledge.
When you pay thousands for college or a seminar, you never say, how could I have been so stupid, why did I do that. The truth is, a loss is just an opportunity to learn. STOP BEATING YOURSELF UP FOR WHAT IS ONLY A NATURAL PART OF TRADING. That attitude only puts you at a huge disadvantage to other traders.
The successful trader understands that the market is very generous and will give him/her plenty of opportunities for a profit.
One day, this is before I learned better, I lost about half of my account balance. I simply waited until price hit the lower trend line and went long. It only gave me the opportunity to recover a little more than half of what I loss, before continuing downward, but it was more than I would have gotten had I done nothing.
There are no absolutes in trading. Trading is more of an art of interpretation. Too many traders see losses as a flaw with themselves instead of seeing a loss for what it really is. A LOSS IS ONLY A LESSON TO HELP YOU TRADE MORE EFFICIENTLY. A LOSS GIVES YOU THE CHANCE TO IMPROVE AND PERFECT YOUR STRATEGY, IT SIMPLY TEACHES YOU WHAT DOESN'T WORK, SO THAT YOU CAN DISCOVER WHAT DOES WORK.
You can have a perfect analysis and still enter a losing trade, because the market sentiment can change, like with an engulfing pattern. It happens and it is OK.
When we set up a trade we have expectations of how that trade is going to play out. A loss is a great disappointment to that picture and a bruise to the ego. We have more trouble letting go of the dream of our glorious ideal trade, than we do taking the loss. The money is gone and it is over, but we still hang on, allowing that one hit to ruin our day and sometimes our week.
A loss allows you to build a new more profitable trading dream for yourself. LET GO of that old dream that no longer fits you and climb into a new successful dream that is more becoming of you.
STOP !!! LETTING LOSSES BE A REFLECTION OF WHO YOU ARE ! It is just part of the game. Learn it's lesson and move on.
A LOSS IS A LESSON (^_^). YOU PAID FOR IT. IT HAS SO MUCH WISDOM TO TEACH YOU, IF YOU'D ONLY LISTEN. THIS IS ONLY ANOTHER OPPORTUNITY TO PERFECT YOUR STRATEGY
Learn from your losses so that you can move on more quickly to capture more profitable trades.
TRADE WELL (^_^)
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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.